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Professional liability insurance could prove valuable

On Behalf of McNabb, Bragorgos, Burgess & Sorin, PLLC | Mar 17, 2022 | Professional Liability

“Professional services” is an umbrella term covering many different providers offering commercial services. Real estate agents, personal trainers, lawyers, accountants, and financial advisors provide professional services and sometimes make mistakes. Those mistakes could lead them into a Tennessee courtroom facing a lawsuit. Professionals who take out an appropriate insurance policy might protect themselves from the financial costs a lawsuit brings.

Professional liability insurance and its value
Avoiding mistakes could keep a professional service provider out of legal troubles. Sometimes, drawing up detailed service contracts and liability waivers might help. Things may still go wrong, and professionals could make errors in judgments or oversights. When such things happen, professional liability coverage could provide the necessary protections that keep the policyholder from suffering financial devastation.

Specific details regarding liability coverage appear in the policy’s contract — the contract details what the insurance company covers and what it does not. The document would note how much coverage the buyer receives and other benefits such as legal representation. Explanations about potential breaches might appear clearly in the text.

Ultimately, professionals may turn to an insurance policy when someone tries to sue them. Of course, they must have a policy in place already to do so.

Relying on the insurance coverage
Although someone might purchase professional liability coverage, the insurance provider could try to avoid paying any claims. The insurance company may state that the claim falls outside the insurance contract’s coverage provisions. Or, the provider might outright engage in bad faith practices. A client might challenge the insurance provider during the claims process and even file a lawsuit against the insurance company.

Those not sure about how their policy works may wish to review it. If the policy proves lacking, purchasing a different one might be an option. Such steps could prevent problems with an unreliable provider.